In a brave new statement, President Donald Trump has criticized Walmart’s response to tariffs, telling them to “eat the tariffs”, and arguing the retail giant should absorb costs instead of burdening consumers.
See the tweet below!
Trump believes Walmart’s massive profits should allow them to “eat the tariffs” without raising prices for American families.
Trump’s comments emerged online after Walmart CFO John David Rainey highlighted unprecedented price challenges due to tariffs.
Rainey stated that prices are rising at a rate unseen before, creating a difficult environment for Walmart to maintain its commitment to low prices.
Despite these challenges, Trump insists that Walmart and China should absorb the impact without transferring costs to customers, CNBC reports.
Walmart has expressed their efforts to keep prices low, but claimed there’s a limit to what the company can endure.
By working with suppliers and absorbing some tariff costs, Walmart aims to maintain its pricing strategy.
Yet, Trump’s insistence that foreign producers and companies like Walmart should pay raises questions on how businesses will adjust to these fiscal pressures.
The complexity of tariffs and their economic impact has led to intense discussions between Trump and Walmart CEO Doug McMillon.
Despite these discussions, disagreements persist on absorbing tariffs without raising consumer costs.
Former President Trump believes that sacrificing profits aligns with his economic agenda, designed to create more domestic manufacturing jobs, while consumer sentiment continues to drop with fears of rising inflation due to tariffs.
“We have not seen price increases at this magnitude, in the speed in which they’re coming at us before, and so it makes for a challenging environment,” stated Walmart CFO John David Rainey.
Adding to the complexity is Walmart’s vast array of imported goods from China and Central/South America.
While the company has reported growth in its revenue and online sales, the importation of cheaper goods still confronts volatility due to tariffs.
Nevertheless, Trump maintains his call for tariffs on products, believing this will resolve economic uncertainties in the long term.
Amidst the chaotic backdrop of tariffs, the larger question remains about how these economic policies will reshape the landscape for American businesses and consumers.
As Walmart navigates these challenges, the magnifying glass is on Trump’s trade strategies and whether they lead to the promised economic revival.
President Trump and his supporters believe that keeping tariffs helps secure American jobs and strengthens domestic markets, while critics argue retailers and consumers are the ones to bear the brunt.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!” Trump wrote on social media.
Trump tells Walmart to "eat the tariffs" after the retailer warns of price hikes due to import taxes. Walmart cites narrow margins and rising costs. https://t.co/WNJ9dYziEm
— WUSA9 (@wusa9) May 18, 2025
The future of consumer pricing remains intertwined with geopolitical economic strategies.
Walmart’s ability to balance between competitive pricing and navigating tariff challenges will largely influence consumer loyalty and the wider market’s reaction.
Still, Trump’s bold accusations and unwavering stance promise a looming tension in how businesses will accommodate policy-driven price impacts.
